Australian Energy Market Operator

AEMO operates Australia's National Electricity Market (NEM), the interconnected power system in Australia’s eastern and south-eastern seaboard, and the Wholesale Electricity Market (WEM) and power system in Western Australia.

AEMO operates gas retail markets in New South Wales and the Australian Capital Territory, Queensland, South Australia, Victoria, and Western Australia. AEMO also operates wholesale gas markets in south-eastern Australia, those being the Declared Wholesale Gas Market in Victoria (DWGM), the Short Term Trading Market in Adelaide, Brisbane and Sydney (STTM), and the Gas Supply Hub (GSH), whose trading locations are based at Wallumbilla in Queensland, and Moomba in South Australia. AEMO also operates the Natural Gas Services Bulletin Board (GBB), and is system operator of the Victorian Gas Declared Transmission System. AEMO is also responsible for Gas Services Information functions in Western Australia.

Submissions received during public consultation period

2015 Benchmark Reserve Capacity Price (for 2017–18)

For the 2017–18 capacity year, the IMO proposed a final revised value for the maximum reserve capacity price of $164,800 per MW per year to the ERA.

This value was approved by the ERA on 30 January 2015 in accordance with clause 2.26 of the Market Rules. The benchmark reserve capacity price of $164,800 per MW per year will be effective from 1 October 2017 to 1 October 2018.

Submissions received during the consultation period

2014 Maximum Reserve Capacity Price (for 2016-17)

For the 2016-17 Capacity Year, the IMO proposed a final revised value for the Maximum Reserve Capacity Price of $176,800 per MW per year to the Economic Regulation Authority (ERA).

This value was approved by the ERA on 30 January 2014 in accordance with clause 2.26 of the Market Rules. The Maximum Reserve Capacity Price of $176,800 per MW per year will be effective from 1 October 2017 to 1 October 2018.

2011 Maximum Reserve Capacity Price (for 2013/14)

For the 2013/14 Capacity Year, the IMO proposed a final revised value for the Maximum Reserve Capacity Price of $240,600 per MW per year to the ERA. This value was approved by the ERA on 28 January 2011 in accordance with clause 2.26 of the Market Rules. The Maximum Reserve Capacity Price of $240,600 per MW per year will be effective from 1 October 2013 to 1 October 2014.

2010 Maximum Reserve Capacity Price (for 2012/13)

For the 2012/13 Capacity Year, the IMO proposed a final revised value for the Maximum Reserve Capacity Price of $238,500 per MW per year to the ERA. This value was approved by the ERA on 29 January 2010 in accordance with clause 2.26 of the Market Rules. The Maximum Reserve Capacity Price of $238,500 per MW per year will be effective from 1 October 2012 to 1 October 2013.

2009 Maximum Reserve Capacity Price (for 2011/12)

For the 2011/12 Capacity Year, the IMO proposed a final revised value for the Maximum Reserve Capacity Price of $164,100 per MW per year to the ERA. This value was approved by the ERA on 19 January 2009 in accordance with clause 2.26 of the Market Rules. The Maximum Reserve Capacity Price of $164,100.00 per MW per year will be effective from 1 October 2011 to 1 October 2012.

2008 Maximum Reserve Capacity Price (for 2010/11)

For the 2010/11 Capacity Year, the IMO proposed a final revised value for the Maximum Reserve Capacity Price of $173,400.00 per MW per year to the ERA. This value was approved by the ERA on 15 January 2007 in accordance with clause 2.26 of the Market Rules. The Maximum Reserve Capacity Price of $173,400.00 per MW per year is effective from 1 October 2010 to 1 October 2011.

2007 Maximum Reserve Capacity Price (for 2009/10)

For the 2009/10 Capacity Year, the IMO proposed a final revised value for the Maximum Reserve Capacity Price of $142,200 per MW per year to the ERA. This value was approved by the ERA on 30 January 2007 in accordance with clause 2.26 of the Market Rules. The Maximum Reserve Capacity Price of $142,200 per MW per year was effective from 1 October 2009 to 1 October 2010.

2006 Maximum Reserve Capacity Price (for 2008/09)

In 2005/06, the IMO completed a review of the Maximum Reserve Capacity Price for the period between 1 October 2008 and 1 October 2009. Following the review process and public consultation, a final revised Maximum Reserve Capacity Price of $122,500 per MW per year was proposed to the Economic Regulation Authority. This value was accepted by the ERA on 23 January 2006.

Final Report

Draft Report

Applicable Documents

Changes to the Reserve Capacity Pricing Mechanism

On 18 August 2006, the Minister for Energy approved a change to the Market Rules whereby the Reserve Capacity Price will be reduced in proportion to any excess of credits acquired by the IMO. This applies from 1 October 2008. Details of the change can be found below.